Buying Advice I think I am being lied to, by a dealer.

[Dr_Zinj]

The purpose of taxation is to pay for the services provided by your various levels of government. If you're not receiving value equal to your taxes, then you're being stolen from and there is no ethical or moral reason not to "cheat" the government to recoup your fair share.

It's a very sad fact that the only level of taxation most American tax payers have any direct control over is for their local taxes and school taxes. State and Federal taxes are driven by self-interested congressmen and women and we have no direct say in the matter. Worse, the state and federal tax systems are insulated even more so by the hordes of revenue managers who interpret and administer the legislation often in ways that make absolutely no sense at all; unless you're being paid for it.

Many years ago, I bought a new car in New Jersey. I had to pay the New Jersey tax and had budgeted for that. Drove it across country to my new posting at McChord AFB, Washington state. Found out that I had to pay the difference in Washington State tax and New Jersey tax on the car. Hadn't known that ahead of time, hadn't budgeted for that. Isn't that a wonderful way to screw over a young E-4 in the military, or anyone else for that matter? I did with a whole lot of nothing for the next six months to cover that difference.

Now I live in New Hampshire. And yeah, I pay quite a bit in property taxes. But I also vote and I'm not afraid to open my trap to complain about how my money is gonna be spent.

 

[devildog1]

legal....illegal.... tax, when congress gives themselves a raise do you think they worry about how you're going to feel?

20-20 is right on, why worry about such small riffle things when our government just shot down social security raise for three, that's 3 years in a row but never fail to give them selfs a raise each and every year. Wake up Americans, It's almost too late.
DevilDog

 

[mostly_gas]

State sales tax can only be charged by a deler that is licensed by the state. If the dealer is only licensed by the State of Pennsylvania, he can only charge Pennsylvania sales tax for the transaction. That money will then be paid to the state of Pennsylvania by the dealer.

If you did not pay tax on the purchase in Pennsylvania, then NY will want you to pay sales tax to them instead. If you look at your state's 1040 tax form instructions it will probably point you directly to the line on the form where they will want you to include it in your income tax payment.

To further complicate matters my state calls it sales and use tax. If the selling dealer happens to be licensed by both states and knows the machine is for use in your home state, then he would be charging you the rate that applies to your state of residence.

Having worked at a small manufacturing firm with mostly out of state customers I know that state sales tax is not limited to licensed dealers. I had to work with both CPA firm and bookkeeper providing information to establish whether or not tax was owed, IIRC sometimes it was. Almost all transactions were business which does affect the rules. Tax professionals will know when and where to pay.

 

[Proline Fisher]

^^^ You are wise to ask your tax professional.

As a former sales tax auditor for the State of Maryland I would NOT trust half the tax professionals out there when dealing with sales tax. You would be suprised at how many accountants told there clients the wrong information costing them a ton of money. Most accountants are only concered/ knowledgable with income taxes.

 

[rd_macgregor]

We have a national sales tax in Canada (the GST: Goods and Services Tax). It started out at 7% but has since been reduced to 5%. In some provinces they have a harmonized sales tax (HST) which combines the GST and provincial sales tax. Here in PEI, the two taxes are charged separately. You would think that a 5% GST plus a 10% PST would result in total sales tax of 15%, but that isn't the case. Here, the province charges its 10% tax on the purchase PLUS the GST, so our total sales tax is actually 15.5%. This is called "getting serviced" by the government.
Despite my gripes about this, I've always been a greater fan of consumption taxes (like the sales tax) and use taxes than of property taxes. I just don't like having the feeling that I am really only renting my property from the government.
This whole discussion is an eye-opener for me; I thought the commerce clause of the US Constitution prohibited the states from taxing interstate trade. Obviously, the states have found ways to subvert that intention.

BOB

 

[randy41]

As a former sales tax auditor for the State of Maryland I would NOT trust half the tax professionals out there when dealing with sales tax. You would be suprised at how many accountants told there clients the wrong information costing them a ton of money. Most accountants are only concered/ knowledgable with income taxes.

and there are some cpa's who research before giving professional advice. most of the ones i know would.

 

[Turbys_1700]

I remember years ago North Carolina had an exemption for all farm purchases such as tractors from state taxes. That changed and what started out @ 1% has now increased to the normal state sales tax rate for all agriculture purchases. So, the FEL that I just purchased for $2850 had an additional 8% tax added to it. That's the cost of doing business these days.

 

[ultrarunner]

I remember years ago North Carolina had an exemption for all farm purchases such as tractors from state taxes. That changed and what started out @ 1% has now increased to the normal state sales tax rate for all agriculture purchases. So, the FEL that I just purchased for $2850 had an additional 8% tax added to it. That's the cost of doing business these days.

When I bought my Post Hole Digger the Kubota Dealer needed my zip code and when I asked why he said it was to collect the tax due my city and county even though he was two counties away... there are no Kubota Dealers in my county or the adjoining counties.

Sales Tax is now 10.25% where I live in CA.

 

[irvingj]

Just as an interesting sidelight... I don't know if it's still the same or not, but back in the late 60s when I was in Finland, I was told that the sales tax on a new car there was...100%.

On the other hand, Finland was the ONLY country to ever pay back completely (to the US) the war reparations that were assessed on it after WWII, a result of its siding with Germany (against Russia).

 

[powergod1]

Just as an interesting sidelight... I don't know if it's still the same or not, but back in the late 60s when I was in Finland, I was told that the sales tax on a new car there was...100%.


On the other hand, Finland was the ONLY country to ever pay back completely (to the US) the war reparations that were assessed on it after WWII, a result of its siding with Germany (against Russia).

interesting, did not know that